Amal Ltd 2020-21

Amal Ltd | Annual Report 2020-21 Key audit matter Auditor’s response Revenue from sale of goods to the parent company Significant revenue of the Company is generated through sale of goods to its holding company. Occurrence of such transactions and their pricing on an arm’s length basis were significant areas of audit focus. Principle procedures included but were not limited to: - obtaining a detailed understanding of the processes, controls and policies with respect to related party transactions - evaluation of the design of controls including approvals and related compliances - testing implementation and operating effectiveness of the controls that address risks relating to the occurrence and the pricing - Performing following procedures on the samples selected: - reading and verification of the terms of the purchase orders. Performing corroborative inquiries for the business rational on pricing and relevant terms and conditions, including sighting evidences of transaction of similar products on identical terms with unrelated parties - verification of necessary approvals as per the authorisation matrices - verification of documentary evidences around deliveries and subsequent realisation and obtaining balance confirmations - performing analytical procedures and trend analysis Assessing the adequacy and appropriateness of the disclosures in the Financial Statements. Information other than the Financial Statements and Auditor’s Report thereon The Board of Directors of the Parent is responsible for the other information. The other information comprises the information included in the letter to shareholders, corporate identity, Directors’ Report and its annexure, Management Discussion and Analysis, Corporate Governance Report and performance trend, but does not include the Standalone Financial Statements, Consolidated Financial Statements and our Auditor’s Reports thereon. Our opinion on the Consolidated Financial Statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the Consolidated Financial Statements, our responsibility is to read the other information, compare with the Financial Statements of the subsidiary company audited by the other Auditor, to the extent it relates to the entity and, in doing so, place reliance on the work of the other Auditor and consider whether the other information is materially inconsistent with the Consolidated Financial Statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated. Other information so far as it relates to the subsidiary company, is traced from their Financial Statements audited by the other Auditor. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Management’s responsibility for the Consolidated Financial Statements The Board of Directors of the Parent is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these Consolidated Financial Statements that give a true and fair view